The present invention relates generally to the field of stored value cards and more particularly to a method and system for batch loading of microprocessor based stored value cards off-line using a batch-load terminal.
A prepaid stored value card contains stored value which the user of the card can spend with a retailer. A card issuer receives money from a consumer in advance and stores corresponding value on the stored value card. After the retailer accepts stored value from the card, the retailer is reimbursed with actual money by the card issuer. Generally, a stored value card is a plastic card the size of a credit card that is embedded with either a microprocessor and a memory chip or only with a memory chip with non-programmable logic. The card embedded with the microprocessor is capable of adding, deleting, and otherwise manipulating information on the card. The chip in a memory chip only card consists only of storage and a little extra hardware that prevents access to the stored data unless, for example, certain stored passwords or PIN""s are input correctly. The memory chip only card can only undertake a pre-defined operation. Memory chip only cards represent the bulk of stored value cards currently on offer, primarily for pre-paid, disposable card applications such as pre-paid phone cards.
Memory chip only based cards are non-reloadable, have a very limited card lifetime, and are therefore disposable. On the other hand, microprocessor based cards are typically reloadable. Therefore, they potentially have a much longer card lifetime and are not generally considered to be disposable. The security associated with the use of memory cards is not nearly as good as the security that is available with microprocessor cards. With some cards, it is relatively simple to defraud a memory based stored value card. For example, a computer device can be used to intercept and record secret information communicated during a transaction with the memory card and can then be used to play the role of the memory card in other transactions. Further, memory cards have been in use for a relatively long time, and disposable memory card security has remained stationary during that time. However, there are now next generation cards available that provide higher security. It is axiomatic that the longer security remains stationary, the more susceptible the security becomes to being compromised.
Microprocessor based cards offer greater memory storage and security of data and can also process data on the card. Microprocessor cards typically have cryptography built in, which makes use of secret keys. Thus, microprocessor cards offer far more security than memory based cards. Moreover, microprocessor cards can be reloaded. Therefore, they can be issued without value. Since memory cards are non-reloadable, they must be issued with value on them. When stored value cards are issued with value on them, they are equivalent to cash. Thus, the same elaborate security and audit measures employed to transport, store, and dispense cash must be used to transport, store, and dispense memory cards.
It is not necessary to employ these elaborate security measures with microprocessor based reloadable cards issued without value. Microprocessor based reloadable cards can be loaded on-line using a load key kept in a remote processor for security reasons. However, the on-line load transaction is time consuming and requires costly infrastructure.
There is a current need to provide a method and system for batch loading microprocessor based stored value cards off-line using a batch-load terminal, which eliminates the need for expensive infrastructure costs associated with on-line loading transactions. There is a further need to provide a method and system for batch loading microprocessor based stored value cards for use as disposable cards, but with all the security afforded by microprocessor based cards.
It is a feature and advantage of the present invention to provide a method and system for batch loading microprocessor based stored value cards using a batch-load terminal which eliminates the infrastructure costs associated with on-line loading.
It is a further feature and advantage of the present invention to provide a method and system for batch loading microprocessor based smart cards for use as disposable cards with all the security of a microprocessor based card.
In an embodiment of the present invention, a reloadable microprocessor based card is batch loaded off-line using a batch-load terminal. The loading process for a microprocessor card can be done on-line for security reasons. In order to maintain security, the secrecy of the load key is closely guarded, and it is located in a remote processor. Therefore, loading reloadable microprocessor cards on-line is time consuming and ties up systems and infrastructure. Thus, it is advantageous to carry out the load process off-line. In order to load microprocessor based cards off-line in a secure way, it must be done in a secure location. The secret load key that is normally kept in the remote processor is put into a decryption device at a local batch-load terminal. In this way, the load process can be carried out securely at the local batch-load terminal.
In an embodiment of the present invention, a microprocessor based card is initialized with a load key with or without storing value on the card. Cards which are initialized without value are loaded with value on the batch-load terminal. Load information for the batch-load terminal transaction is logged in a transaction log. When the cards are sold, funding information is provided to a funding system of the financial institution. The load key is either a standard load key which allows successive reloading or a special load key which prevents reloading of the card after the original value is used. Thus, the card with the special load key is a disposable microprocessor based stored value card.
In an embodiment of the present invention, effectively, the disposable microprocessor card has a starting value on it. Once the value is used up, it cannot be reloaded by normal means. Therefore, the disposable microprocessor card has all the security advantages of a reloadable card and none of the disadvantages of a disposable memory based card. The microprocessor based card with the special load key is thus a disposable card which can be used by collectors in the same way disposable memory based stored value cards are currently used, or for any other purpose for which disposable memory cards are presently used.
To achieve the stated and other features, advantages and objects, an embodiment of the present invention provides a method and system for batch loading the stored value application of a stored value card microprocessor. Communication is initiated on a stored value card reader at a local terminal between the stored value application and a batch-load application residing on the local terminal. A request for a load transaction is transmitted for the stored value application to the batch load application, and the batch-load application authorizes the load transaction in response to the request. The stored value application and the batch-load terminal include secret load key information for the load transaction.
In an embodiment of the present invention, the load key information is stored securely in a security module on the local terminal. The local terminal is a computer, for example a personal computer, at a financial institution, such as a bank. The batch-load application also includes an encryption device and a CD-ROM for security purposes. The request for the load transaction includes a request from the stored value application to the batch-load application to load a preselected monetary value to the stored value application. The request is transmitted from the stored value application to the batch-load application as an encrypted message and includes the load key information. The batch-load application decrypts the encrypted message and validates the load key information. The batch load application also confirms a funding source, such as the financial institution, and transmits an authorizing message to the stored value application, including data representing the pre-selected monetary value. The authorizing message also includes, for example, load key information and card serial number information.
In an embodiment of the present invention, before batch-loading the stored value card, the stored value application is initialized by unlocking the application with transport key information. The transport key information is exchanged for the load key information, which may be a reloadable load key that allows successive reloading or a non-reloadable load key which cannot be reloaded after the original loading of stored value. After the load transaction is authorized, the transaction is confirmed by the stored value application transmitting a load completion message to the batch-load application. The batch load application collects data about the load transaction from the messages communicated between the stored value application and the batch-load application and logs the data in a load transaction log. The batch-load application also generates the load transaction log to a stored value card load transaction file and transmits the file to the card system provider and the funding source, such as the financial institution.
In an embodiment of the present invention, the system components include a stored value card reader/writer, which can read and write to the stored value application and which is connected to the financial institution""s personal computer. The batch-load application runs on the same personal computer, which is also has a security module for storing the load key information, as well as an encryption device. The batch-load application includes a methodology for collecting the messages transmitted between the stored value application and the batch load application as load transaction data and for generating log files of the load transaction data to the system provider and the funding source. A card feeder mechanism is provided to load cards automatically to the card reader/writer from a feed hopper. A collection hopper is provided to collect the cards after loading, and a reject hopper is provided to collect rejected cards.
Additional objects, advantages and novel features of the invention will be set forth in part in the description which follows, and in part will become more apparent to those skilled in the art upon examination of the following, or may be learned by practice of the invention.